Among the leading global producers in the highly concentrated silicones market, with good diversification by customers, products, and regions; An improved cost position following recent restructuring; and Relatively favorable long-term growth prospects for silicones. Debt leverage that is improving, but is expected to remain high; Expected thin free cash flow after 2010, which could impede business reinvestment and harm long-term competitiveness; Business cyclicality; and Reduced, but still meaningful, refinancing risk within the next few years. The ratings on Albany, N.Y.-based Momentive Performance Materials Inc. (MPM) reflect a highly leveraged financial profile (despite a steady decline in debt leverage during the past several quarters), an aggressive financial policy, and a fair business risk profile as a global producer of silicones and
